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What earnings reports reveal about online ads

Source : AP
Last Updated: Thu, Apr 18, 2013 23:00 hrs


— Tuesday: Yahoo Inc. says first-quarter revenue shrank by 7 percent. The weak spot was in one of Yahoo's former strengths — display advertising. After subtracting the commissions that Yahoo pays its partners, the company's display advertising revenue fell by 11 percent from last year to $402 million. That development suggests that Yahoo is losing more ground in a key area of Internet advertising to Google Inc., which already dominates search advertising, and Facebook Inc., whose online social network is becoming a more powerful marketing magnet.

The Interactive Advertising Bureau and PricewaterhouseCoopers release a report showing that U.S. Internet advertising revenue grew 15 percent to a record $36.6 billion in 2012, with mobile ad revenue growing faster than other types. Mobile ad revenue more than doubled from the previous year to $3.4 billion. It accounted for 9 percent of the total in 2012, up from 5 percent in 2011. Mobile ads represent an area of growth for many companies.

— Thursday: Google Inc. issues results that provide further proof that the Internet search leader is figuring out how to make more money as Web surfers migrate from personal computers to mobile devices. The first-quarter numbers show that a recent decline in Google's average ad prices is easing. The latest decrease in average ad prices was just 4 percent. By comparison, Google's average ad price fell by 6 percent during the final three months of last year and by 12 percent during last year's first quarter.

Microsoft Corp. says online advertising revenue grew 22 percent to $784 million in the January-March period, largely because of an increase in revenue per search, offset partly by a decrease in display advertising revenue.

Coming up:

— May 1: Facebook Inc.

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